12th Mar 2015
Hotels are expensive. Expensive to build, expensive to operate – in some cases, of course, expensive to stay in! For the developer and investors creating a hotel project, the costs of a hotel development are not always as predictable as they would like, and cost overruns on materials and labor can quickly turn a promising project into a quagmire swarming with panicked investors.
A consultant can help in a wide variety of ways:
- Streamlining of Expenses: With local knowledge of both suppliers and labor, a consultant can almost always study the cash flow of the project and find multiple areas where savings can be carved out and redistributed without sacrificing quality of construction or design.
- Identifying Additional Funding: With some austerity measures in place to keep things moving forward, a consultant can use their knowledge of local financing to seek out emergency bridge loans, additional investors, or other sources of funding that can get a project past a roadblock and back on track to completion and profits.
- Objective Overview: Aside from managing acute financial crises, a consultant can also provide ongoing oversight of the project to ensure that future financial problems are avoided by putting into place pricing controls, labor cost management, and other day-to-day management of costs and other finances.